Micro, Small and Medium Enterprises (MSMEs) continue to power Kenya’s economy, contributing over 40 percent of the national Gross Domestic Product (GDP) and providing the majority of jobs across the country. Despite this crucial role, many still grapple with challenges of informality, limited capital and constrained access to markets.
It is against this backdrop that the Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, on Thursday unveiled a bold and structured growth agenda for Kenya’s small business sector during the 4th MSME Connect Forum held at Jaramogi Oginga Odinga Sports Grounds in Kisumu.
The forum, jointly hosted by the national government, the Kisumu County Government and development partners, brought together hundreds of entrepreneurs, private sector leaders and policymakers under the theme of building resilient and sustainable MSMEs.
In his keynote address, Dr. Oparanya underscored the government’s commitment to helping enterprises grow progressively from micro to small, small to medium and medium to globally competitive levels.
“MSMEs are the backbone of Kenya’s economy. They are the heartbeat of our national productivity and innovation. The critical question is how we raise the bar to ensure these enterprises scale up and compete globally,” Oparanya said.
He explained that the Ministry is implementing an intentional support framework to guide MSMEs through various growth stages. For micro enterprises, the focus is on financial inclusion, business formalisation and capacity building. The Hustler Fund, he noted, has become a vital enabler, allowing millions of small traders to access affordable credit and build trustworthy financial track records.
“If you can be trusted with five hundred shillings, you can be trusted with ten million. Credit is about trust and trust must be built intentionally,” he remarked.
To support the transition from micro to small enterprises, the government is revitalising Constituency Industrial Development Centres (CIDCs) and establishing County Aggregation and Industrial Parks across the country. These facilities will provide modern equipment, production spaces and value chain support to help businesses improve quality and productivity.
Dr. Oparanya further emphasized that the future of enterprise must align with sustainability, identifying renewable energy, climate resilience, waste management and green manufacturing as key pillars for MSME growth.
“MSMEs are central to Kenya’s green transition. We are developing incentives and partnerships that enable them to access emerging green markets and adopt sustainable technologies,” he said.
As Chair of the Africa Ministerial Cooperative Conference (AMCCO), the Cabinet Secretary reaffirmed Kenya’s commitment to regional integration through the African Continental Free Trade Area (AfCFTA), which opens access to a market of more than 1.3 billion people.
“Through AfCFTA, we are removing non-tariff barriers and simplifying trade systems to promote seamless cross-border trade. Our MSMEs must integrate into continental value chains and transform into global competitors,” he noted.
He also highlighted Kenya’s collaboration with the International Trade Centre (ITC), following discussions with Executive Director Ms. Pamela Coke-Hamilton. The establishment of an ITC office in Nairobi, he said, will connect local enterprises with global expertise and technology.
Oparanya further outlined that digitalisation remains a central driver of competitiveness, enabling enterprises to reach wider markets and improve efficiency.
“The government is investing in digital platforms such as MSME Connect, e-Citizen and digital payment systems to support a tech-enabled environment that promotes growth, transparency and accountability,” he said.
He called for a united effort among financial institutions, government agencies and development partners to modernise the MSME sector, noting that Government alone cannot achieve this transformation.
“Together, we must build an ecosystem where every entrepreneur has access to finance, markets, technology and a supportive policy framework,” he emphasized.
In his welcoming remarks, Kisumu Governor Prof. Peter Anyang’ Nyong’o lauded the MSME Connect Dialogue as a crucial platform for collective action, learning and innovation.
“It is my distinct honour to welcome you all to Kisumu—the frontier of opportunity, innovation, and enterprise,” he said. “Today, we gather not merely for a meeting, but for a convergence of ideas, expertise and aspirations. This forum symbolizes what we can achieve when government, private sector and development partners commit to moving in one direction—forward.” He said.
Prof. Nyong’o described MSMEs as the heartbeat of local communities and the true drivers of economic growth, noting that their success represents shared prosperity for all.
He highlighted several policies adopted by the County Government to support enterprise growth, including the Buy Kisumu, Build Kisumu policy, which encourages residents to consume and invest in locally produced goods and services. The Kisumu County Trade and Markets Policy, he added, seeks to promote inclusivity, transparency and market access, while the Cooperative Policy aims to strengthen community groups into sustainable cooperative business models.
The Governor also announced ongoing initiatives such as the Entrepreneurship Clinics Programme, which brings together MSMEs, County officials, national agencies and private sector actors to co-create solutions to local business challenges.
“These clinics have proved invaluable in enhancing business stability, nurturing innovation and strengthening MSME competitiveness,” he said, noting that capacity building and mentorship remain key priorities.
Prof. Nyong’o reaffirmed the County’s focus on sustainable financing, value-chain development and market linkages, citing the commissioning of a new rice milling plant in Ahero as an example of value addition and local empowerment.
“Our rice cooperatives now have every reason to grow stronger and produce more. We are unshackling our farmers from the bondage of exporting raw produce only to have it value-added elsewhere,” he said.
He urged MSMEs to embrace formalisation, describing it as a gateway to growth rather than a burden.
“Operating informally limits access to credit, entry into formal markets and eligibility for government and donor support initiatives,” he explained.
The Governor commended the Ministry of Cooperatives and MSMEs Development for bringing the dialogue to Kisumu after successful sessions in Nairobi, Embu and Mombasa, saying the event would deepen the county’s partnership with the national government and private sector.
“Let us continue to walk this journey together. Let us simplify the business environment, enhance formalisation, strengthen sustainability and build resilient ecosystems for our MSMEs,” he said.
“When we empower MSMEs, we strengthen Kisumu. When we invest in MSMEs, we create an inclusive Kenya and when we support our young innovators, we secure a prosperous future for generations to come,” he said.
